But here’s the harsh truth:
Having life insurance and having adequate life insurance are two completely different things.
In 2025, with rising living costs, increasing lifestyle expenses and family responsibilities, it’s more important than ever to ensure your family’s financial future is secure – even in your absence.
W – WHY Do You Need Life Insurance?
Imagine you’re an income-generating machine.
Just like any asset, your income helps support:
- Liabilities
- Monthly Household and Lifestyle expenses
- Children’s future expenses (Education, marriage etc.)
Now imagine something happens to you tomorrow.
Without your income, can your family manage all of the above?
That’s the Why of life insurance – to replace your income and protect your family’s future.
H – HOW MUCH Life Insurance is Enough?
Let’s go beyond guesswork. Here’s what a realistic calculation looks like:
You need a Life Insurance of Rs. 2.02 crore, not a Rs. 50 lakh or 1 crore.
Why? Because you’re not just covering loans – you’re replacing your future income too.
W – WHICH Type of Life Insurance is Best?
Let’s keep it simple:
Why?
- It gives you the highest cover at the lowest premium.
- The sole purpose is protection, not investment or savings.
- You can invest separately to grow wealth – insurance should purely protect.
Avoid mixing insurance with investments (like ULIPs, Endowment plans). It is always better to keep insurance and investment separate.
Key Takeaways:
- Insurance is income replacement, not just debt cover.
- Use a goal-based calculation to determine how much is enough.
- Buy a pure term plan first, then think about wealth-building.
- Review your cover every 2–3 years or after major life events.
Feel free to connect with us on: